Alberta health agency will enlist third party to review private surgical contracts, minister says

Open this photo in gallery:

Alberta Health Minister Adriana LaGrange said Tuesday that the provincial health authority will use an external party to conduct its review of procurement and contracting practices for private surgical facilities and that the government intends to release its findings “as much as possible” to the public.

The Globe and Mail on Tuesday reported that Ms. LaGrange, in October, signed a directive stripping power from Alberta Health Services’ then-chief executive, Athana Mentzelopoulos. The directive transferred negotiating and approval authority tied to chartered surgical facilities (CSF) to her department from AHS.

Last week, The Globe reported on a series of allegations Ms. Mentzelopoulos’s lawyer made in a letter to AHS on Jan. 20, including that Premier Danielle Smith’s former chief-of-staff interfered in the procurement and contracting processes of AHS on behalf of private companies.

Auditor-General Doug Wylie has since said he has opened an examination into AHS and Health Ministry contracts and procurement processes, while AHS said Thursday it will be conducting its own internal probe. The RCMP has also said it is reviewing the allegations.

But in brief remarks to reporters in the legislature on Tuesday, Ms. LaGrange said the AHS review would be done by a third party. She didn’t specify by who or what the parameters of the investigation would be.

“People deserve to know what’s going on and we want to make sure that happens,” Ms. LaGrange said ahead of a cabinet meeting.

Ms. LaGrange, in response to the allegations, said “it’s the reason we’re refocusing AHS. We know that there’s issues in AHS.”

Also on Tuesday, Tanya Fir, Minister of Arts, Culture and Status of Women, and Searle Turton, Minister of Children’s and Family Services, held a news conference, the first public appearance by cabinet members since the allegations surfaced.

Both ministers voiced their support for Ms. Smith.

“I appreciate the Premier’s decisive leadership with asking for the expedited review from the Auditor-General and look forward to seeing how that review works out,” Mr. Turton said.

The ministers sidestepped questions regarding whether they believe it is appropriate for Ms. LaGrange to remain in her role during the investigation and whether there are any internal calls for the Premier or Health Minister to step down. Mr. Turton said Ms. LaGrange will “have much more to say on this in the very near future.”

Ms. Mentzelopoulos’s letter alleged that she launched a series of investigations into problems she discovered at AHS and was dismissed two days before she was set to meet with the Auditor-General about her findings. She also said in the letter she is prepared to sue for wrongful dismissal.

The Premier has denied any wrongdoing.

On Monday, the new head of AHS, who was installed after Ms. Smith terminated Ms. Mentzelopoulos and the entire board in January, called the executive changes “unsettling” as he addressed staff for the first time since the allegations surfaced.

Andre Tremblay replaced the seven-person AHS board as the sole administrator last month and is simultaneously serving as interim president of AHS and as deputy minister of the Ministry of Health. The Globe listened to a recording of the virtual town hall he held with physicians, staff and volunteers.

Mr. Tremblay was not asked about the allegations during the moderated question-and-answer session but did address changes in the organization’s executive leadership and how he will manage any conflicts of interest that arise from his multi-pronged role.

“There’s been changes at executive levels. I know those changes are unsettling,” he said. “I can only imagine how stressful that might actually be for folks that are just trying to do their jobs. What I can say is you have a very strong executive team right now.”

Ms. Smith’s government has twice removed the entire board of AHS and installed multiple leaders before Mr. Tremblay, who is overseeing the transition of AHS to a hospital-based service provider. Ms. Smith is dividing AHS into four separate organizations – focused independently on acute care, continuing care, primary care and mental health and addictions.

Mr. Tremblay told attendees of the town hall that the ethics commissioner is his “best professional friend” when asked about how he intends to manage any conflicts of interest. He said his “biggest challenge” is ensuring his two roles are differentiated enough and added that he has had to recuse himself from some meetings.

Mr. Tremblay said he is setting up regular meetings with Ethics Commissioner Shawn McLeod, a lawyer who once ran to become a United Conservative Party candidate and was appointed to the non-partisan position last May.

NDP Leader Naheed Nenshi, in a statement on Tuesday, said that the allegations have gone “from incredibly bad to even worse.” He renewed his call for Ms. LaGrange to step down during the investigations. “And if they want to resign, that should be on the table too,” he said.

CSFs are privately owned outfits that perform medical procedures at the expense of government, as part of the public health care system. The United Conservative Party government has been expanding their use, arguing that they are more efficient than relying on hospitals.